Class 11 Economics Important Chapter 4 Elasticity of Demand

Class 11 Economics Important Chapter 4 Elasticity of Demand Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 11 Economics Important Solutions and select need one. AHSEC Class 11 Economics Additional Notes English Medium Download PDF. HS 1st Year Economics Important Solutions in English.

Class 11 Economics Important Chapter 4 Elasticity of Demand

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. Assam AHSEC Board Class 11 Economics Additional Question Answer are part of All Subject Solutions. Here we have given HS 1st Year Economics Important Notes in English for All Chapters, You can practice these here.

Elasticity of Demand

Chapter: 4

PART – A : MICROECONOMICS

IMPORTANT QUESTION AND ANSWER

Short Type Question and Answer:

1. What is the relationship between availability of close substitutes and price elasticity?

Ans: Greater availability of close substitutes makes price elasticity higher.

2. Why is the demand for rice in Orissa or West Bengal likely to be inelastic?

Ans: Because rice is a staple food with no close substitutes in those regions.

3. How does the nature of a commodity influence its price elasticity?

Ans: Necessities have inelastic demand, comforts have elastic demand, and luxuries have more elastic demand.

4. Give an example of a necessity with inelastic demand.

Ans: Medicines.

5. Why is demand for a fan generally elastic?

Ans: Because its consumption can be postponed.

6. How does the proportion of expenditure affect price elasticity?

Ans: Goods taking a small share of total expenditure have low elasticity, while high-cost items have high elasticity.

7. Give an example of a low-cost item with inelastic demand.

Ans: Match box.

8. Why does cigarette consumption often remain unchanged despite a price rise?

Ans: Due to consumer habits or addiction.

9. What is the impact of multiple uses of a commodity on its price elasticity?

Ans: Commodities with multiple uses tend to have higher elasticity.

10. Give an example of a commodity with multiple uses.

Ans: Electricity.

11. How does income level affect price elasticity for rich consumers?

Ans: Rich consumers are less sensitive to price changes, so elasticity is low.

12. How do poor consumers respond to small price changes?

Ans: They give importance to even small price changes, so elasticity is high.

13. Why is the demand for cement considered relatively elastic?

Ans: Because its consumption (house construction) can be postponed.

14. How does time period influence price elasticity?

Ans: Elasticity is lower in the short run and higher in the long run.

15. Why is demand more elastic in the long run?

Ans: Because consumers can more easily switch to substitutes over time.